Ever Given: Suez Canal Authority to seek $1 billion compensation

Written by Nick Blenkey
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Videos released on YouTube showed giant Evergreen containership under tow after being freed. It went no further than the Great Bitter Lake.

The Suez Canal Authority will seek compensation of more than $1 billion for losses and costs related to the refloating of the giant containership Ever Given, Suez Canal Authority Chairman Admiral Osama Rabie told Egypt’s Sada El-Balad TV on Wednesday.

It’s not clear from whom the compensation will be sought.

The International Union of Marine Insurance said last week that “the relevant hull & machinery (H&M) and cargo interests, or their insurers, will likely be responsible for the cost of the salvage operations and …Other claims, including loss of vessel hire or damage to the canal itself are likely to be directed to the protection & indemnity (P&I) or other specialist insurer.”

Richard Turner, IUMI President commented: “From a wider perspective, marine underwriters are continuously assessing the changing profile of the risks they insure. The trend for larger container vessels has highlighted a number of potential issues such as compromised maneuverability in high winds, an increasing number of onboard fires, challenges surrounding salvage, and the lack of availability of suitable repair facilities. Underwriters need to be aware of this.”

According to the English language “Egypt Today” newspaper, Admiral Rabie said that the Suez Canal Authority had launched its investigation into the accident,, requesting the handing over of all records and documents on board the Ever Given.

He added that “all things that took place on board of the ship are recorded in the black box” and that a five-member investigative committee would include a marine expert, a legal expert, an expert in compensation matters, and an engineer.

The authority will calculate all the costs of the operation of refloating the ship over the six days hat it blocked the canal, Admiral Rabie said, estimating the costs at more than $1 billion.

Noting that the Ever Given was carrying cargo estimated at $3.5 billion. Admiral Rabie said, “we already saved a lot of money for them [the Insurance companies and the owner] by ending the problem without losses of the cargo or the ship.”

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